When someone decides to invest in real estate it may be for a number of different reasons. Some of these reasons may be to have a source of passive income, to supplement their salary, to change their career and to set up a retirement fund.
In this article we will be focusing on this last point, namely retirement.
It is possible to retire with a sizeable income when you invest in real estate, however you cannot just buy a property and sit and expect the cash to flow in; you must implement the right strategy, in this article we will discuss how real estate investment can help you in your golden years and some of the strategies you can implement to generate a lucrative income.
1. Renting out your property
One way you can start generating income is by renting out a part of your property or the entire property and gaining a monthly income through rent. How much your monthly rental yields are will depend on different factors such as the neighborhood, amenities, the property type, the size of the property and the current market trends. You can also increase your rental yield and property value by making some choice renovations. We advise you to seek the expertise of a reliable real estate agent; they will be able to help you when it comes to marketing your property and setting up a fair rental yield.
2. Capital appreciation and selling
What is appreciation? When the value of a property goes up over time it is known as appreciation. Historically the value of real estate tends to increase over time. Investors can take advantage of this capital appreciation by buying a property, waiting for the value to go up and then selling the property for a profit later. You can generate some income for your property during this waiting period by renting it out until you wish to sell it.
3. Pay off your loans/mortgage
By renting out your property or properties, you can put some of the income into paying off your mortgage or any other loans you may have in your name. This goes a long way into making yourself debt free quickly in the future so that you do not have to worry about paying more money during your golden years and instead focus on generating more income to do with as you please.
4. Tax Benefits
Perhaps the most important wealth aspects of real estate are the tax benefits associated with owning property. Depending upon the type of property owned you are eligible to certain deductions in your income tax each year. Money you may have borrowed to extend or improve a property can also qualify for a deduction from income derived from that property.
This is money which you can use for other investments or simply save for use in the future.
5. Start Early
There is a saying in English which goes, “The sooner the better.” It basically means the sooner you start to do something the better off you will be in the long run. It is never too early to plan for your future; even if you are in your early 20’s you start investing in properties and generating an income for the coming years. If you do not have that much money in the bank don’t worry, you can start out small and then work your way up as your income starts coming in. The earlier you start the more money you will make in real estate and secure yourself a tidy income for retirement.
There are many different paths and strategies that one may use to reach their investment goals; however the most important step is to choose a strategy and take action. We hope that this article will help you in choosing an effective strategy. At the same time we also advice that you not to get stuck in “education mode” for long. Remember the sooner you start the better it will be for you.
Want more tips on how you can increase your income through real estate? Talk to us, send a message to email@example.com or call us at 012-299-6155 or 037-450-6655.
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